By

Dan Pilcher

CACI Senior Vice President

& Chief Operating Officer

Phone: 303.866-9600

E-Mail: dpilcher@COchamber.com

Friday, March 7, 2008

CACI Opposes PUC Sunset Review Bill

Although CACI supports reauthorization of the PUC, a number of CACI members oppose many of the peripheral issues that have been added to the Commission’s reauthorization bill, HB-1227.  By adding non-essential provisions, CACI believes all kinds of utility rates will increase, and Colorado consequently will become less competitive.

Today, the House Appropriations Committee amended the bill and sent it to the House Floor for Second Reading.  The introduced bill was amended and passed on February 21st by the House Transportation and Energy Committee, which sent it to the Appropriations Committee.

The bill, opposed by CACI, is sponsored by House Majority Leader Alice Madden (D-Boulder and Senator Abel Tapia (D-Pueblo).

On Monday, CACI Governmental Affairs Vice President Donnah Moody called a “stakeholders” meeting of CACI members concerned about this bill.  Here are some of CACI’s objections to the bill because it:

• Proposes an eleven-year re-authorization period which is too long, given the major structural changes proposed in the bill.

• Mandates non-PUC-regulated rural electric cooperatives and municipal utilities deliver solar rebates without adequate cost-recovery.

• Mandates non-PUC-regulated rural electric cooperatives and municipal utilities implement net-metering programs, duplicating the uniform net metering standards in HB-1160.

• Grants the Governor’s Energy Office intervener status in adjudicatory matters affecting gas or electric utilities; CACI believes this adds an additional, unnecessary layer of oversight because environmental issues associated with the provision of public utility services are appropriately handled by the Colorado Department of Public Health and Environment (CDPHE).

• Expands the role of the Office of Consumer Counsel (OCC) to intervene on environmental concerns; this expansion of authority is objectionable because, unlike CDPHE, the OCC lacks expertise in the complex environmental arena.

• Allows the OCC to act as an arbiter between conflicting classes of consumers (e.g. agricultural, small business, residential) on competing  priorities of those consumers (i.e., rates versus environmental interests); this will lead to unnecessary conflicts and make it impossible for regulated companies to address objections.

• Allows the PUC to assess civil penalties up to $2,000 per violation of any of the statute’s provisions up to a maximum of $150,000 in a six-month period and disallows recovery of those expenses from ratepayers.  CACI opposes this provision because, without strict guidance, excessive penalties can become arbitrary tools where minor mistakes can result in major fines. Unlike performance incentives, penalties can create a hostile regulatory environment that would discourage competition and stifle economic development.

Senate Passes Bill to Loosen “Caps” on Medical Malpractice Claims

On Monday, the Senate gave final approval on Third Reading, with an additional amendment, to SB-164, which would loosen the existing damage limits for medical-malpractice claims, and sent it to the House.  The bill, which is backed by the Colorado Trial Lawyers Association, is sponsored by Senate President Peter Groff (D-Denver).

In the House, the SB-164 has been assigned to the Senate Judiciary Committee, and the House sponsor is Representative Terrance Carroll (D-Denver).

CACI remains concerned that the bill will:

• Increase health-care costs by driving up med-mal insurance premiums for physicians (the Colorado Medical Society estimates that premiums will increase 12 percent to 14 percent);

• Induce some doctors to end their practices or switch to less-risky medical specialties;

• Cause some doctors practicing “defensive medicine” by requiring expensive tests just to protect themselves against the possibility of lawsuits; and

• Negatively affect rural areas where there are fewer doctors if the bill causes some to end their practices.

CACI Studies New Version of Single-Sales Factor Bill, Asks Members to Review Draft

The CACI Tax Council met today to continue reviewing the new draft, which CACI received last week from the Governor’s Office.

CACI is urging its members who operate in Colorado and other states to review this draft to determine its effect on their state income tax liability and then inform CACI.  The draft can be viewed and downloaded from the Headlines section of the CACI Web site.  This bill does not apply to companies that only operate in Colorado.

One month ago, CACI sent the Governor’s Office a letter that contained detailed recommendations from the Tax Council’s subcommittee to improve the original bill draft.

CACI members with questions and comments about this bill draft should contact Loren Rachel Furman, CACI Director of Governmental Affairs, at 303.866.9642 or via e-mail at lfurman@COchamber.com

House Committee Kills Bill Opposed by CACI that Would Have Prohibited Colorado from Monitoring Emissions on Federal Lands

On March 3rd, the House Health and Human Services Committee killed HB-1338, which would have eliminated oversight by the Colorado Department of Public Health and Environment to monitor emissions on Federal lands with respect to development of the Regional Haze State Implementation Plan (SIP).  The bill, sponsored by Representative Al White (R-Estes Park), was postponed indefinitely at his request.

Senate Gives Second Reading Approval to HB-1097, which Provides Leave to Workers who Volunteer with the Civil Air Patrol

The bill requires private- and public-sector employers give 15 days’ leave to workers who want to respond to all types of declared emergencies.

CACI worked successfully to delete the provision that would have made failure to comply by a private-sector employer a “cause of action” and that would have awarded attorneys’ fees to the prevailing party.  CACI thus has moved from opposition to the bill to neutrality.

The bill is sponsored by Representative Kent Lambert (R-Colorado Springs) and Senator Chris Romer (D-Denver).  The Senate passed the bill on Second Reading today.  The bill has been amended in both the House and the Senate.

House Committee Kills CACI-Opposed Bill Concerning Diesel-Powered Mobile Machinery

Yesterday, the House Health and Human Services Committee killed a bill, HB-1230, which CACI opposed.  The bill, which concerned a number of CACI members, would have required certain diesel-powered mobile machinery to meet “Tier 2” emission standards.  The bill was sponsored by Representative Randy Fischer (D-Fort Collins).

CACI Board Votes to Oppose Two Anti-Business Ballot Initiatives

On February 28th, the CACI Board of Directors voted to oppose two proposed initiatives that will profoundly damage the Colorado’s business environment should they make it onto the November ballot and be approved by the voters.

The two proposals, Numbers 57 and 62, were discussed in detail in the February 22nd issue of The Colorado Capitol Report.  Both measures are backed by a coalition of organized labor unions called “Protect Colorado’s Future,” according to an article in yesterday’s The Rocky Mountain News:

http://www.rockymountainnews.com/news/2008/mar/05/labor-issues-may-find-ballot/

Number 62 would eliminate Colorado’s “at-will” employment system because it says no worker could be fired or suspended unless the employer first establishes “just cause for the discharge of suspension.”  The measure lists seven work-related reasons and two economic reasons that would establish “just cause.”

The initiative would cover not only private-sector workers but also public-sector workers at both the state and local government level.  For Colorado State Government, the proposal would upend the state civil-service system, which has its basis in the Colorado Constitution.

A suspended or discharged worker could seek “mediation” of his or her claim for wrongful discharge or suspension.  The mediator who finds that the individual was suspended or terminated without just cause can either award the individual back wages or restore the individual to his or her job, or both.  And the mediator can assess his or her costs to the losing party and award “attorneys’ fees to the prevailing party as to any claim made by the employee.”  The mediator’s decision “shall be final.”

Number 57 would (a) greatly expand criminal liability penalties for a company’s workers and (b) establish a “private right of action” that would allow any Colorado resident to sue a business and its employees for alleged criminal conduct.  Should the lawsuit succeed, the State of Colorado would receive the damages awarded, and the citizen could be awarded costs and attorney fees.

On Wednesday, the state’s Initiative Title Setting Review Board denied appeals of the Board’s decision on February 20th that both measures met the Colorado Constitution’s “single-subject” requirement for ballot initiatives.

The next step for the two proposals is for the Secretary of State’s Office to approve the petition forms.  Once that is done, supporters can begin to collecting signatures of registered voters.  To place a measure on the November ballot, an initiative’s proponents need to collect at least 76,047 valid signatures, which have to be submitted by August 4th to the Secretary of State’s Office for the proposal to be certified.  In the meantime, however, appeals could be filed with the Colorado Supreme Court, arguing that the two measures do not meet the “single-subject” requirement for ballot initiatives.

And Four More, Related Anti-Business Initiatives Coming Down the Pike . . .

Meanwhile, three new versions of Number 57 and one of Number 62 are moving through the ballot initiative process.  This afternoon, staff of the legislature’s Legislative Council and Office of Legal Services were scheduled to meet with proponents of the following:

• Number 73, “Criminal Conduct by Businesses---Liability”

• Number 74, “Liability of Business Entities and Their Executive Officials—Criminal Liability”

• Number 75, “Criminal Conduct by Businesses—Civil Liability”

• Number 76, “Just Cause for Employee Discharge or Suspension”

The language of each initiative, i.e., the proposed amendment to the Colorado Constitution, can be found on the legislature’s Web site:

http://www.leg.state.co.us/lcs/initrefr/0708InitRefr.nsf/reviewcomment?openview&count=30

The first step for proponents of an initiative is to submit it to the legislature for “review and comment.”  After the “review and comment” hearing by legislative staff, proponents, if they have no changes to the measure, can submit it to the Initiative Title Setting Board for consideration.  If they change the proposal, however, they may be required to go back for another “review and comment” meeting.

Status Report on Other Bills . . .

HB-1001 is one of Governor Bill Ritter’s economic development bills.  It would encourage bioscience research grants and advancements with initial funding coming from limited gaming funds.  CACI supports the bill.  It is awaiting action by the Senate Business, Labor and Technology Committee.

HB-1183, supported by CACI, loosens the standards of eligibility for the job-creation tax credit created in 2007 by HB-1017 by reducing the time for the number of new jobs created to five new jobs in six months in rural areas and ten new jobs in six months for urban areas.  A “strike-below” approved in House Business Affairs and Labor Committee would allow the Colorado Economic Development Commission to establish the criteria by which the incentives are allocated.  The bill awaits Senate Second Reading.

HB-1138 would allow the Colorado Department of Revenue to penalize tax preparers who understate the tax liabilities of their clients “ . . . through a willful or reckless disregard of applicable laws or rules . . . ”  CACI worked successfully to have the bill sponsor amend the bill to ensure that a worker who completes his or her employer’s tax returns at the employer’s direction would not be subject to the $500 penalty imposed by the bill.  The amendment also exempts Certified Public Accountants based on current licensure requirements stipulated by state law.  The bill is pending in the Senate Finance Committee.  CACI is now neutral on the bill.

HB-1276, which creates a standard for employers to use to provide break time and make “reasonable efforts” to provide a private workplace location where a mother can nurse her child and/or express breast milk for up to two years.  The bill states that an employer who makes a reasonable effort to accommodate a nursing worker will be in compliance with the workplace accommodation standards.  CACI successfully worked with the bill’s House sponsor to change the bill to accommodate CACI’s concerns that it not be a mandate on businesses.  CACI is now neutral on the bill.

SB-122, the union-backed “wage-transparency” bill, has been assigned to the House Business Affairs and Labor Committee.  The House sponsor is Representative Terrance Carroll (D-Denver).  Although CACI opposed SB-122 as introduced, it now is neutral on the bill, because CACI worked to successfully amend SB-122 to mirror the language of the Federal National Labor Relations Act.  The bill now says that employers shall not punish workers for disclosing their own wage information, except as expressly permitted under the NLRA, which protects mid-level and upper-level management as well as those (auditors, human resource people, information technology people, etc.) who have access to wage information as a function of their job.  As introduced, SB-122 would have made it an unfair labor practice for an employer to act against a worker who discussed or disclosed his or her wages or inquired about other employees’ wages.  Organized labor advocated the bill because unions want to obtain compensation information about workers in a company as a potential collective bargaining issue.

For More Information on Legislation . . .

CACI members with questions about legislation that CACI opposes or supports should contact Chuck Berry, CACI President, at 303.866.9652 or e-mail him at cberry@COchamber.com

Questions pertaining to health-care bills should be directed to Ralph Pollock, Chair of the CACI HealthCare Council, at 303.866.9657 or via e-mail at ralph@apaccess.com